Efficiency First: Delivering Business Efficiency in a Competitive World

At a meeting of the G20 in Hamburg, Germany, Richard Cowart spoke about the principal governmental policy decisions needed to turn the concept of “Efficiency First” into a commercial reality. Efficiency First is a principle applied to policymaking, planning, and investment in the energy sector that prioritizes investment in customer-side efficiency resources whenever they would cost less, or deliver more value, than investing in energy infrastructure, fuels, and supply alone.

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State and federal utility regulators have traditionally controlled the electric power industry through their decisions. But rapid technology change means cleaner, lower-cost, and more resilient options for meeting customers’ energy needs are or soon will be available. Customers may soon have cost-effective options to meet their own energy needs through transactive platforms and markets. Regulators...